The Sick and family Leave tax credit for self-employed and 1099 workers is for eligible self-employed individuals or independent contractors.
Under the FFCRA, eligible self-employed individuals or independent contractors could claim a refundable tax credit against their income tax liability for up to 100% of the qualified sick and family leave equivalent amounts, subject to certain limitations, if they were unable to work or telework due to COVID-19-related reasons.
The qualified sick leave equivalent amount was the lesser of either $511 per day or 100% of the average daily self-employment income for each day an individual was unable to work or telework because they were subject to a quarantine or isolation order, had COVID-19 symptoms and were seeking a medical diagnosis, or were caring for someone who was subject to a quarantine or isolation order or who had COVID-19 symptoms.
The qualified family leave equivalent amount was the lesser of either $200 per day or 67% of the average daily self-employment income for each day an individual was unable to work or telework because they needed to care for a child whose school or place of care was closed due to COVID-19.
To claim the tax credit, eligible self-employed individuals or independent contractors would report the qualified sick and family leave equivalent amounts on their 2019, 2020 or 2021 tax return, depending on when the leave was taken.
For the most part, all we require is your 2020 and 2021 tax return including your schedule C and a copy of your drivers license for identification.
The deadline to file is April 15, 2024 for the 2020 tax year and April 15, 2025 for the 2021 tax year.
We will need to file an amendment on your tax return. We do this all the time. All we require from you is a copy of your 2020 and 2021 tax returns and a copy of your drivers license and we’ll handle the rest.
There are a few factors that go into calculating your tax credit refund amount. The biggest factors would be:
Your net income from your schedule C on your 2020 and 2021 tax returns.
How many days you were out sick or told to quarantine with Covid-19
How long you might have cared for a loved one affected by Covid-19.
How long any schools or daycare centers were closed (and you were forced to care for a minor child during the closings).
But the fastest and easiest way to find out how much you qualify for is to simply use our online Tax Credit Calculator
This tax credit is for self-employed individuals, small business owners, freelancers, and 1099 contractors only.
Not at all. We basically have an agreement letter on our website that you’ll need to read and complete. You will also need to upload a copy of your 2020 and 2021 tax returns and a copy of your drivers license. That’s basically it.
We try to make the process as easy and stress free as we can for you. Once we have your tax returns we’ll take over and get everything filed for you
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